• Coins
    • Bitcoin
    • Dogecoin
    • Ethereum
    • Litecoin
    • Ripple
    • Tron
    • NFT
  • Cryptonews
  • Blockchain
  • Metaverse
  • Regulation
  • Market Cap
What's Hot

Could Render Network team up with Avorak for image generation?

05/27/2023

JPMorgan Predicts Bitcoin (BTC) To Revisit $45,000

05/26/2023

Are investors losing interest in Bitcoin? Avorak suggests yes

05/26/2023

Subscribe to Updates

Get the latest creative news from FooBar about art, design and business.

Facebook Twitter Instagram
Trending
  • Could Render Network team up with Avorak for image generation?
  • JPMorgan Predicts Bitcoin (BTC) To Revisit $45,000
  • Are investors losing interest in Bitcoin? Avorak suggests yes
  • Bitcoin Exchange Inflows Mostly Coming From Loss Holders, Weak Hands Exiting?
  • Floki forges an exclusive collaboration with DWF Labs
  • TMS Network grows as Filecoin and Avalanche fade
  • Fahrenheit wins bid to acquire Celsius assets after insolvency
  • Ripple CEO Brad Garlinghouse Says Judgement on SEC’s XRP Lawsuit To Come ‘In Weeks Not Months’
Facebook Twitter Instagram
Center Crypto NewsCenter Crypto News
Demo
  • Coins
    1. Bitcoin
    2. Dogecoin
    3. Ethereum
    4. Litecoin
    5. Ripple
    6. Tron
    7. NFT
    8. View All

    JPMorgan Predicts Bitcoin (BTC) To Revisit $45,000

    05/26/2023

    Bitcoin Exchange Inflows Mostly Coming From Loss Holders, Weak Hands Exiting?

    05/26/2023

    NUPL Finds Rejection At Long-Term Resistance

    05/25/2023

    Why This Is A Crucial Support Level

    05/25/2023

    Which Meme Coin Should You Buy?

    05/12/2023

    Dogecoin consolidates above 200 EMA with profit booking at $0.1!

    04/12/2023

    Here’s why Elon Musk changes Twitter’s blue bird icon to a ‘DOGE’ meme

    04/12/2023

    Tridog announces The Doge Documentary to celebrate 2 decades of Doge

    04/11/2023

    Ethereum Encounters Resistance At Critical Level, Vital Trading Levels to Monitor

    05/24/2023

    Ethereum (ETH) Beacon Chain Shatters Records With $7.7 Billion Inflows

    05/22/2023

    Ethereum Defies Expectations With Lower Volatility Than Bitcoin

    05/22/2023

    Vitalik Buterin argues against overloading Ethereum’s consensus

    05/22/2023

    Litecoin Ordinals Hits 2 Million Inscriptions Showing Progress in NFTs

    05/17/2023

    US Litecoin Visa cards to stop its services from May 1, 2023

    04/19/2023

    LTC is all set to surpass the $100 mark!

    01/31/2023

    Can Litecoin (LTC) surpass the $82 mark in the third attempt?

    01/12/2023

    Ripple comes out with new value report for 2023

    05/25/2023

    Ripple acquires Metaco

    05/18/2023

    Ripple plans to spread its presence further in Dubai

    05/09/2023

    Ripple files response to SEC’s Letter of Supplemental Authority

    04/14/2023

    Particle Network provides complete backing to Tron DAO

    05/12/2023

    TRON tops the chart for most active users last week

    04/27/2023

    Justin Sun faces charges from SEC along with eight celebrities

    04/11/2023

    Is it time for a long position in TRX?

    02/01/2023

    U.S. IRS Considers Taxing NFTs Like Other Collectibles

    03/22/2023

    Meta Shuts Down NFT Project to Focus on FinTech and Content

    03/14/2023

    Solana’s Solend V2 Release, Is SOL Price $50 Next?

    03/07/2023

    Amazon NFT Marketplace To Reportedly Launch Next Month

    03/07/2023

    Could Render Network team up with Avorak for image generation?

    05/27/2023

    JPMorgan Predicts Bitcoin (BTC) To Revisit $45,000

    05/26/2023

    Are investors losing interest in Bitcoin? Avorak suggests yes

    05/26/2023

    Bitcoin Exchange Inflows Mostly Coming From Loss Holders, Weak Hands Exiting?

    05/26/2023
  • Cryptonews

    Could Render Network team up with Avorak for image generation?

    05/27/2023

    Are investors losing interest in Bitcoin? Avorak suggests yes

    05/26/2023

    Floki forges an exclusive collaboration with DWF Labs

    05/26/2023

    TMS Network grows as Filecoin and Avalanche fade

    05/26/2023

    Fahrenheit wins bid to acquire Celsius assets after insolvency

    05/26/2023
  • Blockchain

    Gateway to Cosmos 2023 is scheduled to happen from June 3-5 in Prague

    05/25/2023

    Squid and Axelar announce integration with Filecoin Virtual Machine

    05/25/2023

    Red Swan CRE delivers token studio on Hedera

    05/24/2023

    COFRA is now a part of the Hedera Governing Council

    05/18/2023

    HBAR Foundation now supports Yamgo

    05/17/2023
  • Metaverse

    Upland Gears Up for Genesis Week 2023: A Spectacular Celebration in Las Vegas

    05/25/2023

    China to Expand Metaverse Use in Key Sectors

    05/25/2023

    Futureverse: Pioneering the Open Metaverse Concept

    05/19/2023

    Everything You Need to Know About RTFKT

    05/18/2023

    LEGO and Epic Games to Create Safe and Fun Metaverse for Kids

    05/16/2023
  • Regulation

    Ripple CEO Brad Garlinghouse Says Judgement on SEC’s XRP Lawsuit To Come ‘In Weeks Not Months’

    05/26/2023

    Global securities watchdog urges governments to regulate crypto like traditional financial assets

    05/24/2023

    Janet Yellen Says More Bank Mergers Likely Amid Industry Turmoil in Meeting With Over Two Dozen Execs: Report

    05/22/2023

    Treasury sanctions Huriya CEO’s Tether address over Russia connections

    05/20/2023

    SEC deems Filecoin a security, asks Grayscale to withdraw trust registration

    05/18/2023
  • Market Cap
Center Crypto NewsCenter Crypto News
Home»Coins»Bitcoin»This Bitcoin On-Chain Reading Confirms the Rally is Getting Started
Bitcoin

This Bitcoin On-Chain Reading Confirms the Rally is Getting Started

By 01/23/2023No Comments0 Views
Facebook Twitter Pinterest LinkedIn WhatsApp Reddit Tumblr Email
Share
Facebook Twitter LinkedIn Pinterest Email


After 216 days, the Bitcoin Market Value to Realized Value (MVRV) ratio finally broke above 1, making this accumulation the second longest after it took BTC prices 300 days to bottom up after the bear run of 2014-2015. It also signals the likelihood of another refreshing BTC rally after gains of last week.

Bitcoin’s MVRV Breaks Above 1

The breakout coincided with BTC prices surging to as high as $23,300 on Saturday, January 21, a positive development, especially for optimistic holders. 

Bitcoin Price on January 22| Source: BTCUSDT on KuCoin Trading View

As of writing on January 22, prices have cooled off, and the coin is trending at around $22,700, albeit with relatively low trading volumes. Still, the retracement puts BTC within a bullish formation following impressive gains on January 20 when the coin printed higher, defying gravity and confirming demand.

The MVRV ratio changes depending on Bitcoin’s market forces. The prevailing sentiment is that BTC is bottoming up. Bulls could be preparing for another leg up, injecting the much-needed volatility and volatility into the crypto markets. However, the absence of confirming indicator presented problems. 

Technical and fundamental analysts may use the MVRV ratio to time market entries and exits. Typically, whenever the MVRV ratio is below 1, then it implies that prices are at their bottom. 

Any reversal from sub-1 to above 1 with increasing valuation may signal price bottoms and, possibly, more room for upsides in the coming days. This signal could be a precursor to guide swing and long-term traders to hold on to their long positions and wait for more gains before exiting once BTC becomes overvalued based on on-chain readings.  

Conversely, historical values reveal that whenever the MVRV is above 3.7, there is a real probability that the Bitcoin market will be overheating. Subsequently, it could be the best time to exit and take profits.  

Bitcoin Sentiment Shifting

To MVRV ratio is dynamic, changing depending on the fluctuating valuation of BTC. At any point, the MVRV ratio is calculated by dividing the market value and the realized value of bitcoin. The market value measures the prevailing sentiment amongst holders, which, as history shows, changes depending on spot rates.

Meanwhile, the realized value considers each coin’s actual spending. Calculating the realized value takes into account the acquisition cost of each coin in question. If the MVRV ratio is below 1, should coins be sold, most holders will realize losses. 

The more the MVRV ratio increases, the more holders and traders will be willing to sell as they get more into the money. Subsequently, the ratio is a good gauge of whether BTC is overvalued or undervalued in the short, medium, or long term. 

Streams from IntoTheBlock show that, on average, 62% of BTC holders are making money, with 36% losing money.

Feature Image by Freepik, Chart by TradingView

Share. Facebook Twitter Pinterest LinkedIn Tumblr Telegram Email

Related Posts

JPMorgan Predicts Bitcoin (BTC) To Revisit $45,000

05/26/2023

Bitcoin Exchange Inflows Mostly Coming From Loss Holders, Weak Hands Exiting?

05/26/2023

NUPL Finds Rejection At Long-Term Resistance

05/25/2023

Leave A Reply Cancel Reply

Top Posts
Cryptonews

Could Render Network team up with Avorak for image generation?

05/27/2023
Bitcoin

JPMorgan Predicts Bitcoin (BTC) To Revisit $45,000

05/26/2023
Cryptonews

Are investors losing interest in Bitcoin? Avorak suggests yes

05/26/2023

Subscribe to Updates

Get the latest Hot news from Center Crypto about Bitcoin, Altcoin, NFT, Market Updates Etc

Advertisement
Demo
Stay In Touch
  • Facebook
  • Twitter
  • Pinterest
  • Instagram
  • YouTube
  • Vimeo

Your source for the serious news. This website is crafted specifically to for crazy and hot cryptonews. Visit our main page for more tons of news.

We're social. Connect with us:

Facebook Twitter Instagram Pinterest YouTube
Top Insights

Could Render Network team up with Avorak for image generation?

05/27/2023

JPMorgan Predicts Bitcoin (BTC) To Revisit $45,000

05/26/2023

Are investors losing interest in Bitcoin? Avorak suggests yes

05/26/2023
Get Informed

Subscribe to Updates

Get the latest Hot news from Center Crypto about Bitcoin, Altcoin, NFT, Market Updates Etc

© 2023 ThemeSphere. Designed by ThemeSphere.
  • Terms & Conditions
  • Contact
  • Privacy Policy
  • DMCA

Type above and press Enter to search. Press Esc to cancel.